Sec. 12519. Dairy business innovation initiatives
1,080 words·~5 min read·
/bill/115/hr/2/eas/section-12519A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section: The term dairy business means a business that develops, produces, markets, or distributes dairy products. The term initiative means a dairy product and business innovation initiative established under subsection (b). The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall establish not less than 3 regionally located dairy product and business innovation initiatives for the purposes of— encouraging the use of regional milk production; creating higher-value uses for dairy products; promoting business development that diversifies farmer income through processing and marketing innovation; diversifying dairy product markets to reduce risk; and leveraging Federal resources by encouraging entities that host initiatives and partners of those entities to provide matching funds.
An initiative— shall be located in a region with a history of dairy farming; shall be positioned to draw on existing dairy industry resources, including research capacity, academic and industry expertise, a density of dairy farms or farmland suitable for dairying, and dairy businesses; may serve a certain product niche, such as artisanal cheese, or serve dairy businesses with dairy products derived from a specific type of dairy animal, including dairy products made from cow milk, sheep milk, and goat milk; and shall serve dairy businesses in other regions.
Any of the following entities may submit to the Secretary an application to host an initiative: A State department of agriculture or other State entity. A nonprofit entity with capacity to provide consultation, expertise, and grant distribution and tracking. An institution of higher education. A cooperative extension service. An entity described in paragraph
(1)may establish partners prior to the submission of the application under that paragraph, or add partners in consultation with the Secretary, which may include organizations or entities with expertise or experience in dairy, including the marketing, research, education, or promotion of dairy. An initiative shall provide nonmonetary assistance to dairy businesses in accordance with the following: Assistance may be provided directly to dairy businesses in a private consultation or through widely available distribution, and may be provided— directly by the entity that hosts the initiative under subsection (d)(1); through contracting with industry experts; through the provision of technical assistance, such as informational websites, webinars, conferences, trainings, plant tours, and field days; and through research institutions, including cooperative extension services. Eligible forms of assistance include— business consulting, including business plan development for processed dairy products; accounting and financial literacy training; market evaluation; strategic planning assistance; product innovation, including relating to value-added products; marketing and branding assistance, including market messaging, consumer assessments, and evaluation of regional, national, and international markets; innovation in emerging market opportunities, including agritourism, and marketing communication methods; packaging, distribution, and supply chain innovation; dairy product production training, including in new, rare, or innovative techniques; innovation in byproduct reprocessing and use maximization; and other non-monetary assistance, as determined by the Secretary. An initiative shall provide grants for new and existing dairy businesses for the purposes of— modernization, specialization, and grazing transition on dairy farms; value chain and commodity innovation and facility and process updates for dairy processors; and product development, packaging, and marketing of dairy products. An initiative shall provide grants under subparagraph (A)— on a competitive basis, with opportunities to apply for funding available on a rolling basis; and to an entity that receives assistance under paragraph
(1)to advance the business activities recommended as a result of that assistance. An entity that hosts an initiative shall consult with the Secretary and the Administrator of the Agricultural Marketing Service in carrying out the initiative. The Secretary shall establish guidelines and procedures to prevent any conflict of interest or the appearance of a conflict of interest by an initiative (including a partner of the initiative) during the grant selection process under subparagraph (B)(i). The Secretary may suspend or terminate an initiative if the initiative or a partner of the initiative is found to be in violation of the guidelines and procedures established under clause (i). Of the funds made available to carry out this section, the Secretary shall provide not less than 3 awards to eligible entities described in subsection (d)(1) for the purposes of carrying out the activities under subsection (e). The Secretary is encouraged— to award funds under paragraph
(1)in multiyear funding allocations; and to require frequent reporting, as appropriate. The funds awarded to an eligible entity under paragraph
(1)may be used— for program administration of an initiative, including staff costs; and for workshops or other informational sessions that— directly benefit dairy businesses and entrepreneurs; or enhance the capacity of providers of technical assistance to dairy businesses. Not less than 50 percent of the funds made available under subsection
(h)shall be allocated to grants under subsection (e)(2). An entity hosting an initiative shall give priority to the provision of direct assistance under subsection (e)(1) and grants under subsection (e)(2) to— dairy farms and dairy businesses with limited access to other forms of assistance; employee-owned dairy businesses; cooperatives; dairy businesses that establish contracting mechanisms that return profits to farmers who supply their milk; dairy businesses that, in addition to salary and wage compensation, return profits to employees; and dairy businesses that seek to create dairy products that add substantial value in processing or marketing, such as specialty cheeses. In the case of direct assistance under subsection (e)(1) or a grant under subsection (e)(2) that is provided to a specific dairy business and does not benefit the general public, as determined by the Secretary, the assistance or grant shall exclusively be available to dairy businesses owned in the United States. To the extent practicable, the Secretary shall ensure that funds provided to an initiative supplement, and do not duplicate or replace, existing dairy product research, development, and promotion activities. Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the implementation of this section. The Secretary, in coordination with the Chief Economist, shall publish an annual report on the impact of initiatives carried out under this section on— innovation in dairy products; product development under the program under this section; growth areas for dairy product development; and barriers inhibiting majority member-owned domestic dairy firms from— updating capacity; performing competitively in the marketplace; and returning gains to members or reinvesting the gains in ways that benefit the long-term financial stability of the majority member-owned domestic dairy firm and the members of that firm. There is authorized to be appropriated to carry out this section $20,000,000 for each fiscal year.